Farm Bill vetoed, but the biofuel-friendly law probably won't be stopped
Photo by Yandle. Licensed under Creative Commons license 2.0.
President Bush vetoed the five-year, $289 billion Farm Bill today, saying it was too expensive in the current economic climate. Congress passed the bill by wide margins last week, and, as Bloomberg notes, a veto override is likely. So, what does this have to do with us here on AutoblogGreen? Biofuels, natch.
As the Des Moines Register notes, the Farm Bill has a lot to say about non-food crop ethanol. For one thing, there is a $1.01 per gallon tax credit for cellulosic ethanol (I'm sure Mascoma, Coskata, and other cellulosic ethanol pioneers are happy to hear that). The current 51 cent subsidy on each gallon of corn ethanol will drop to 45 cents. Second, relatedly, the 54-cent-per-gallon tariff on ethanol imports will remain through 2010. Third, farmers who collect biomass to be used to make ethanol will get a $45 subsidy for each ton they collect (there is a two-year limit on earning this subsidy). Fourth, there is money set aside for biomass research ($118m, to be exact).
[Source: Des Moines Register]
Reader Comments (Page 1 of 1)
Kevin Nugent 7:54PM (5/21/2008)
How much is biofuel running a gallon anyway ?? Can it even save you money
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jpm100 8:26PM (5/21/2008)
The question isn't whether they are cost competitive with gas, but when do they become cost competitive.
If the claims about cellulosic ethanol are even half true, gas has past that point already.
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Eletruk 9:02PM (5/21/2008)
Tell you what Mr. Bush, the fiasco in Iraq is too expensive in the current economic climate (or any for that matter). Go congress! Override that puppet of oil barons and do what's best for the country!
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Tim 9:31AM (5/22/2008)
MORE corporate welfare. How much of our tax money is going to ADM and other GIANT farm corporations?
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Tony 10:27AM (5/22/2008)
They did over ride it Eleturk ...BUT
A bureaucratic paperwork mistake reportedly has lawmakers and the White House scrambling to sort out Wednesday's presidential veto of the $290 billion farm bill and subsequent override by the House.
The Associated Press reported late Wednesday that while the Senate had been expected to quickly follow suit on the override, action was stalled when it was discovered Congress left out a 34-page section of the bill when lawmakers sent the massive measure to the White House.
As a result, President Bush vetoed a different bill from the one Congress passed, raising questions whether the eventual law would be unconstitutional, the AP noted.
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Tim 11:41AM (5/22/2008)
The bill authorizes direct [taxpayer] payments [redistribution] to farmers with incomes as high as $2.5 million. The Administration wants to limit payments to farms with non-farming incomes of less than $200,000.
http://news.aol.com/political-machine/2008/05/21/bush-vetoes-farm-bill/#cont
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